Williams-Sonoma Inc (WSM)
Return on equity (ROE)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,125,250 | 949,762 | 949,762 | 1,127,900 | 1,127,900 |
| Total stockholders’ equity | US$ in thousands | 2,142,420 | 2,127,860 | 2,127,860 | 1,701,050 | 1,701,050 |
| ROE | 52.52% | 44.63% | 44.63% | 66.31% | 66.31% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,125,250K ÷ $2,142,420K
= 52.52%
The return on equity (ROE) for Williams-Sonoma Inc has shown fluctuations over the past few years. In January 2023 and January 2024, the ROE remained stable at 66.31%, indicating a strong ability to generate profit from shareholders' equity. However, by January 2025, the ROE had decreased to 52.52%, suggesting a possible decline in the company's efficiency in utilizing shareholders' funds to generate returns. It is important for the company to analyze the factors contributing to this decrease in ROE and implement strategies to improve efficiency and profitability in order to maintain shareholder confidence and drive sustainable growth.